Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

accountant doesnt know. Any other accountants who can answer this pleas

13 replies

TriangularCircular · 22/05/2016 09:31

Sorry to post in here, but I need someone in the know to advise me please. I work full time in a job, DH works part time self employed but it is a newish business, so nothing coming in it all. I pay childcare through my bank and also get salary sacrifice childcare vouchers.

DH asked his accountant whether he could claim child care that I pay as a business expense, although it goes from my account. Accountant doesnt know. we cannot find much online, so hoping an accountant in the know could answer this. TIA

OP posts:
WitchDancer · 22/05/2016 10:24

Is this expense wholly & exclusively for business purposes? No, because you do not have to have this expense to run the business (or at least if you were available to look after your child). I cannot understand why your accountant did not know the answer to this question as it is a basic principle

MrsLeighHalfpenny · 22/05/2016 10:25

No. Childcare is nothing to do with the business.

trixymalixy · 22/05/2016 10:27

No

MauledbytheTigers · 22/05/2016 10:27

Yeah seriously you need a new accountant.... I'm not an accountant, not anything to do with accountancy and even I can figure that one out. If childcare was a legitimate business expense, you'd have a hell of a lot of parents setting up small businesses just to claim

whois · 22/05/2016 10:27

Your accountant is stupid if he doesn't know that answer. Is he actually a qualified accountant?

You can not claim child care. It is not wholly and exclusively for th business:

However the business could set up a subsidised crèche and make it available to all employees.... But that's not something HMRC would let you get away with when its your own child.

NoFuchsGiven · 22/05/2016 10:28

Of course not. How did your accountant not know the answer to this? I would be looking at getting a new accountant tbh.

MauledbytheTigers · 22/05/2016 10:29

Sorry posted too soon. But just wanted to echo I'd be very worried about the skills of your accountant.... very worried if you're paying them a good fee.

Julia2016 · 22/05/2016 10:29

No definitely not allowable, it's not wholly exclusively for the business.

curren · 22/05/2016 10:31

I imagine the accountant does know, but didn't want to break the bad news. But I would still be looking at wether I wanted to keep him on or not.

TriangularCircular · 22/05/2016 10:34

Thanks for the responses.

I think I might look into changing accountant!

OP posts:
GettingScaredNow · 22/05/2016 10:54

Get yourselves a new accountant!

I'm a first year accountancy student and even I know his wouldn't be allowed.

HildurOdegard · 22/05/2016 10:57

You might get help by way of childcare element of tax credits. As both of you are working (doesn't matter if he's not earning) - are you entitled to tax credits?

MovingOnUpMovingOnOut · 22/05/2016 11:00

No definitely not in the scenario described.

But when his business is making money, if it's a limited company, your dh could probably enroll in a childcare voucher scheme of his own.

He couldn't do this as a sole trader though. It would have to be a limited company so he would be an employee.

New posts on this thread. Refresh page